Supply Falling Faster than Demand....

HAMISH_MCTAVISH

For the second consecutive month, the number of monthly house sales has fallen. In July, it dropped by 2.9 per cent compared to June. This was the lowest level since January 2010.

The number of houses being put up for sale also suffered, plummeting 7.3 per cent in the month. This was the first time this year that the number of sales instructions has dropped, said Agency Express.

http://www.ftadviser.com/FTAdviser/Mortgages/News/article/20100729/d0a889a8-9afb-11df-9033-00144f2af8e8/Governments-spending-cuts-impact-housing-market.jsp

Well that didn't take long.

The sheeple have learned much faster this time........:D

Someone remind me again, what happens when supply falls at almost three times the rate demand does?:rotfl:

macaque_2

HAMISH_MCTAVISH wrote: »

http://www.ftadviser.com/FTAdviser/Mortgages/News/article/20100729/d0a889a8-9afb-11df-9033-00144f2af8e8/Governments-spending-cuts-impact-housing-market.jsp

Well that didn't take long.

The sheeple have learned much faster this time........:D

Someone remind me again, what happens when supply falls at almost three times the rate demand does?:rotfl:

Hamish

You did not mention this bit:

Stephen Watson, managing director at Agency Express, said: "Anyone working in the public sector will see a drop in their real income as they won’t get a pay rise until 2012, at the earliest.

Any reason for that?

Graham_Devon

Didnt mention this bit either:

"It seems that people who have been looking to move have paused to take stock of the situation and to recalculate their budgets."

Supply may have fallen this month. But then, howcome you don't mention demand falling?

HAMISH_MCTAVISH

Graham_Devon wrote: »

howcome you don't mention demand falling?

Once again, for those people who can't read......

HAMISH_MCTAVISH wrote: »

Someone remind me again, what happens when supply falls at almost three times the rate demand does?:rotfl:

Graham_Devon

Fair point.

So tell us, what happens.

Then we'll revisit this thread next month when the actual results of what is happening are in and nationwide release another update.

Procrastinator333

HAMISH_MCTAVISH wrote: »

http://www.ftadviser.com/FTAdviser/Mortgages/News/article/20100729/d0a889a8-9afb-11df-9033-00144f2af8e8/Governments-spending-cuts-impact-housing-market.jsp

Well that didn't take long.

The sheeple have learned much faster this time........:D

Someone remind me again, what happens when supply falls at almost three times the rate demand does?:rotfl:

Problem solved then Hamish. Enjoy your HPI.

myhouse_2

Given that the spring bounce is over (never happened) and Autumn is on the horizon, isn't it expected that the number of new instructions will go down?

Lance

People always tend to freeze as the headlights hit them just before the crash. The banks won't wait much longer for those not paying their debts and Government help if dwindleing. There are no forced buyers, only forced sellers.

C_Mababejive

Who cares...?

the_flying_pig

HAMISH_MCTAVISH wrote: »

...Someone remind me again, what happens when supply falls at almost three times the rate demand does?:rotfl:

(1) demand and supply are both functions of price. other things being equal as prices fall supply gets less and demand gets more.
(2) if changes to an exogenous factor [i.e. not price - this is the kind of mistake i'd rap a child across the knuckles with a metal ruler for making if i were a GCSE economics teacher] cause a fall in demand then, at the new equilibrium, both price and quantity will be lower.

chucky

so despite the expected frothing from the usual suspects has supply fallen faster than demand - yes or no?